MCV523 February 6th 2009

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FOCUS: DOWNLOADABLE CONTENT Publishers and developers are increasingly paying more attention to DLC. Gamers are no longer merely treated to an extra weapon or car, but rather extensions to the story, entirely new missions and multiplayer modes. “I think developers already have a great attitude towards DLC,” says Microsoft UK’s head of entertainment and gaming Stephen McGill. “If you look at all of the blockbuster titles of 2008 – Gears of War 2, Fable II, Fallout 3, Mirror’s Edge – they are all hugely supported by DLC. We’re seeing that developers and publishers are recognising DLC as a great way of extending the life of their titles. “Now, DLC is planned right from the early stages of production and is becoming an integral and essential part of game development. Because of this we are seeing sales uplift of the original games when good premium DLC comes out, which benefits retailers, publishers and developers.”

Although a wealth of digital add-ons can be found on PlayStation Network and WiiWare, Microsoft has been the most active platform holder in the DLC space. The firm has signed unique content for Tomb Raider: Underworld and Fallout 3, and has reportedly spent $50 million to secure two exclusive Grand Theft Auto IV packs.

number that cannot be taken lightly, and developers and publishers are absolutely rethinking their business models to incorporate additional content to sit alongside boxed product wherever possible. Of course Live points are a very efficient and profitable revenue driver for retail as well.” Although downloadable content can provide additional revenue for publishers, We are seeing sales uplift of it can also be vital to a the original games when good brand’s continued DLC comes out, which benefits success, particularly for retailers and publishers. music titles such as SingStar, Rock Band Stephen McGill, Microsoft and Guitar Hero. “We’re thrilled to have some “Downloadable content is a very incredible premium DLC for third party important part of the Guitar Hero titles like GTA IV coming up, and that’s experience,” states Red Octane senior without mentioning our own gamebrand manager Ian McClellan. expanding content,” continues McGill. “The key to successful DLC is “Our Live platform continues to go listening to what our fans want. We from strength-to-strength. We recently asked our UK Guitar Hero community announced that Live has generated over what bands they would like to see in $1 billion worth of revenue from World Tour, and they said Oasis. So at transactions. This is an incredible the launch of the game we had three

songs available as DLC from Oasis’ Dig Out Your Soul album. “We are also at the stage in 2009 where, in addition to physical product launches such as Guitar Hero: Metallica, we will be releasing DLC weekly – and we believe this is a successful strategy for the franchise.” BRAND BUILDING

With new DLC released on a weekly basis, it appears the digital download market is starting to hit its stride. However, publishers are keen to point out that this isn’t a replacement for retail releases, but a way to grow brands and develop fan bases, so that everyone can benefit in the long-term. “DLC certainly won’t be a substitute for packaged goods,” concludes Brennan. “Rather it should be seen as a way to extend product life cycles at retail by maintaining consumer interest and creating value for money. It’s also very beneficial in terms of building brands and enhancing relationships with the consumer.”


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